Better the devil you know?

Well, our next-door competitor, after almost a year of very soft room sales and lukewarm restaurant business is listing their place for sale. They've been very careful about making sure folks in town haven't found out yet (it's a small town-- it'll get out soon). They've started their listing at the equivalent of $100k per room, which is pretty much standard.
Herself and I have mixed feelings. We've been fortunate to have a competitor who's really not good at hospitality. We worry that although the place is priced high for this market, someone coming in with deep pockets and some marketing savvy could be a more successful competitor to us.
We don't see any need to share the news of the listing with anyone. Doesn't help us, and we're not ones to gossip around town. But we have this bizarre mix of pride (we're glad we've been so successful in dominating our market), concern (what if the next owners are good at this?), and sadness (for all our jousting with them, we don't want anyone to sell for the wrong reasons).

We have often felt like this. Uh oh, what if the next owners are so much better than we are? We are the oldsters in town at this point. And, yes, almost everyone else who has come in has done much better than we have. It's ok. They may give you impetus to up your game.
You may find collaborators instead of competition.

Could you afford to buy and run or have run, to stave off competition? Had a great uncle who used to set up being his own competitor... if they didn't like one bakery, they went to the other, never realizing that they were both his. You might even lowball, seeing that you know the market and of course the outside forces.

I was thinking of the same thing, Generic. If you have the money, buy the place if its right next door.

We've thought about it but don't think the market supports as many inns as there are now. Not sure even by improving the business we could generate enough revenue to cover the carrying costs.

PhineasSwann said:

We've thought about it but don't think the market supports as many inns as there are now. Not sure even by improving the business we could generate enough revenue to cover the carrying costs..

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In that case, could it make sense to buy it to convert it to an alternative use (maybe long term rentals, or offices, or something) thus reducing the number of inn rooms in the area, so less competition for your inn?

I think it will be fine.
You're not 'next door' next door, you're down the road just a bit, aren't you? Or are you literally next door?
Let's say someone buys it ... you make 'friends' and form an association maybe. Have an inn to inn experience by season. Something like that.
I hope it works out for you

It'll be fine either way. We're comfortable that our level of service can't be replicated.
It is literally next door. Properties are adjacent and I can think of 5 different ways we could merge and incorporate them into one giant super-inn/resort. But the capital market being what it is, I don't see that happening.

PhineasSwann said:

It'll be fine either way. We're comfortable that our level of service can't be replicated.
It is literally next door. Properties are adjacent and I can think of 5 different ways we could merge and incorporate them into one giant super-inn/resort. But the capital market being what it is, I don't see that happening..

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Have you considered talking to them, now that you know it's for sale. Maybe they might consider some unconventional lending, depending on how they are financed? And even if they say no, the market is soft, so a while down the line they could possibly come back to you. They know that you know what you are doing... and maybe no one else could make the property viable while you are around.